Thus, under Section 237, although the power to appoint Inspectors to conduct investigation and to act on the reports of the investigation rests with the Central Government, it can do so only if CLB expresses its opinion as regards existence of circumstances calling for investigations.
It is important to note that these three grounds limit the jurisdiction of the Central Government, and it has no general discretion to go on a fishing expedition to find evidence [Barium Chemicals Ltd. Vs. The Company Law Board (1966) 2 Compo L.J. 251]. Accordingly, in Bank of Madura Vs. HSL Industries Ltd. [1999] 98 Compo Cas. 795, CLB held that the failure of the company to register transfer of shares which were sub
sequently registered on intervention of CLB could not constitute a ground for order of investigation under Section 237(b).
